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StashAway, MyTHEO, KDI Invest, Wahed Invest, Raiz: Guide To Investing In Robo-Advisors In Malaysia

Robo-advisors usually requires a low investment amount.

 

Robo-advisor platforms are becoming a popular way to invest in the financial markets, be it equity, bonds, or alternative asset classes. By leveraging technology and the platform’s unique investment strategy, it offers a low-cost solution to investing in the markets.  

To get started, you only need to sign up on the robo-advisor app, answer a few questions about your financial situation and goals and the app will do the rest. Here are some robo-advisors in Malaysia that you can invest with.    

Read Also: Passive Income Investing: 10 Popular Ways To Generate Passive Income In Singapore And Whether It Is Worth Investing In Them? 

What Are Robo-Advisors? 

If you’re new to robo-advisors, they describe digital wealth platforms that offer automated, algorithm financial planning and service to help you invest, monitor and adjust your portfolio. All investing decisions are made void of human emotions, so you don’t have to worry about making a mistake due to feelings of panic or fear that were induced by the state of the markets.    

Upon signing up for the robo-advisor app, you will typically be asked to answer a questionnaire about your current financial situation and goals. Based on your answers, the robo-advisor will help build a diversified portfolio and continue to monitor and rebalance it.   

Robo-advisors usually have a low initial investment amount and have an intuitive onboarding process, making it simple to get started investing with them. 

What Are The Robo Advisor Platforms Available To Malaysian Investors? 

Robo-Advisor  Portfolio  Minimum Investment Amount  Management Fees 
StashAway     StashAway General Investing, Thematic and Flexible Portfolios  None  0.2 – 0.8% p.a. 
MyTHEO  Omakase Portfolio  RM500  0.5 – 1% p.a. 
Kenanga Digital Investing  KDI Invest  RM250  0 – 0.7% p.a. 
Wahed Invest  Shariah-compliant Portfolios   RM100  RM2.50 per month or 0.39 – 0.79% p.a. 
Raiz  Aggressive, Moderate, Conservative, Custom Portfolios  RM5  RM1.50 per month or 0.3% p.a. 

#1 StashAway  

Founded in 2016, StashAway aims to create a digital investment platform that lets people of all net worths invest affordably.  

StashAway uses a proprietary investment method called Economic Regime-based Asset Allocation (ERAA), which adjusts your portfolio according to the economic state we’re in. There are four economic states, namely: (1) Good Times, (2) Inflationary Growth, (3) Stagflation and (4) Recession. 

For example, in an economic state of inflationary growth, where inflation is rising and economic growth is decreasing, the returns from risky investments are likely to be low. ERAA will then reallocate the percentage of the protective and aggressive assets in your portfolio. 

StashAway offers the following types of investments: 

  • General Investing Portfolios powered by: 
    • StashAway – that allows you to invest in a globally diversified portfolio with the aim of providing long-term returns 
    • BlackRock – that allows you to invest in one of the most diversified portfolios on StashAway with 15 to 25 underlying funds, strategised by BlackRock. 
    • ESG – that allows you to invest in companies that rate highly on sustainability efforts, diversity and corporate governance. 
  • Thematic Portfolios – that are curated by professionals based on current trends such as Technology Enablers, Healthcare Innovation, Environment and Cleantech
  • Flexible Portfolios such as the: 
    • Passive Income – which aims for a payout of 4 to 6% with this globally diversified fixed income portfolio and the 
    • US Cash Yield – that invests in US treasuries with targeted yield of 5.3%  

Though there is no minimum investment amount requirement, StashAway advises investors to deposit at least RM25 so they can invest effectively.   

The annual fees for investing in the StashAway General Investing, Thematic and Flexible Portfolios are as shown below: 

Investment amount (RM)  Annual fee 
First 50,000  0.8% 
Any additional amount above 50,000, up to 100,000  0.7% 
Any additional amount above 100,000, up to 250,000   0.6% 
Any additional amount above 250,000, up to 500,000  0.5% 
Any additional amount above 500,000, up to 1,000,000  0.4% 
Any additional amount above 1,000,000, up to 3,000,000  0.3% 
Any additional amount above 3,000,000  0.2% 
Single ETF Flexible Portfolio (no minimum)  0.3% 

 

Aside from these portfolios, you can also invest in StashAway Simple, a cash management portfolio that promises a projected return of 3.8% per annum, with no minimum investment amount or management fees except for a net fee of approximately 0.115% charged by the fund manager that’s embedded in the projected rate.      

You can start investing with StashAway by downloading the StashAway app. 

#2 MyTHEO 

MyTHEO is a digital investment platform launched in 2019 by GAX MD, a joint venture between local technology company Silverlake Group and Japanese investment services provider Money Design.  

MyTHEO’s algorithm constructs a portfolio by first determining the prioritisation of your financial goals in terms of return, cash flow, inflation protection and risk. Then, it will combine assets from three portfolios – Growth, Income and Inflation Hedge to help you achieve your goal.  

MyTHEO offers the following five portfolios: 

  • Omakase – invest in a global portfolio of ETFs curated by professionals for your needs 
  • Essential Products – invest in diversified equities that are in water-related, food-related, energy-resources, and renewable-energy themes   
  • Global ESG – invest in ESG-related ETFs 
  • Money Market – invest in conventional money market unit trust, while the i-MYR Portfolio invests in a Shariah-compliant money market unit trust    
  • USD Trust – invest in a USD trust facility  

To open an account with MyTHEO, you will need to deposit a minimum of RM500. 

The annual fees for investing in the Omakase portfolio is as follows: 

Investment amount (USD)  Annual fee 
First 7,500  1% 
Next 7,500 – 25,000  0.9% 
Next 25,000 – 75,000  0.8% 
Next 75,000 – 125,000  0.7% 
Next 125,000 – 250,000  0.6% 
Over 250,000  0.5% 

 

To start investing, you can register and submit documents such as a copy of MyKad, passport and utility bills or bank statement for validation.  

#3 Kenanga Digital Investing 

Kenanga Digital Investing (KDI) is a venture by Kenanga Investment Bank, a prominent investment bank in Malaysia that offers services such as equity broking, Islamic banking and wealth management. 

KDI offers two digital investment products, which are KDI Invest and KDI Save. KDI Invest uses artificial intelligence (AI) to help investors invest in global ETFs such as Microsoft, Google and Amazon with a starting price of RM250.  

Meanwhile, KDI Save is a cash management platform that invests in money market funds and fixed income instruments. KDI Save offers an effective return rate of up to 4% per annum. 

Here are the annual fees charged for investing with KDI: 

Investment amount (RM)  Annual fee rate 
3,000 and below  0% 
From 3,000 – 10,000  0.7% 
From 10,000 – 100,000  0.6% 
From 100,000 – 250,000  0.5% 
From 250,000 – 500,000  0.4% 
From 500,000 – 2,000,000  0.3% 
Above 2,000,000   RM6,000 flat fee 

 

You can download the KDI app to open an account. It typically takes around 1 to 2 days for your application to be approved upon submission. 

#4 Wahed Invest 

Launched first in the US in 2015, Wahed Invest is one of the first Islamic robo-advisors in the world.  

Wahed Invest is a Shariah-based robo-advisory platform, which means that investments are compliant with Islamic principles. Shariah investments do not invest in companies that provide interest-based services such as conventional banks and companies that deal with products like alcohol, tobacco, weaponry and gaming. 

You will undergo a risk assessment where you will answer questions about your financial situation, goals and time horizon. Depending on your answers, a portfolio will be recommended to you with a mix of securities that will potentially reward you with the highest return possible with your risk appetite. 

Wahed Invest invests in assets such as global stocks, emerging market stocks, sukuk and gold. Investors can choose between six types of portfolios that are categorised according to their risk tolerance level: 

  • Very Aggressive 
  • Aggressive 
  • Moderately Aggressive 
  • Moderate 
  • Moderately Conservative 
  • Conservative  

Wahed Invest charges fees as follows: 

Number of portfolios  Investment amount (RM)  Annual fee 
Only 1 portfolio 

(Annual fee of 0.39 to 0.79%) 

 500,000  0.39% 
100 – 500,000  0.79% 
More than 1 portfolio 

(Either Monthly fee of RM2.50 or Annual fee of 0.39 to 0.79%, whichever is higher) 

 500,000  0.39% 
100 – 500,000  0.79% 

 

To open an account, simply download the Wahed Invest app and fill in your details. Thereafter, you would need to transfer at least RM100, which is the minimum investment amount, yo start investing with the platform. 

#5 Raiz  

Raiz is a joint venture set up in 2020 by Australian financial platform Raiz Invest Australia and local innovation hub Jewel Digital Ventures by the Malaysian government’s Permodalan Nasional Bhd (PNB). 

One notable feature of the Raiz app is that when you sign up for a Raiz account and link your bank account for spending, you can activate Auto Round-ups, which rounds up your spending to the next ringgit and automatically invests your spare change for you.  

For example, if you pay RM8.90 for snacks, Raiz will automatically round it up to RM9 and the spare of RM0.10 will be invested.  

There are also other features like setting recurring investments on a weekly or monthly basis. 

Raiz invests in unit trust funds and offers four portfolios which are: 

  • Aggressive 
  • Moderate  
  • Conservative 
  • Custom 

You can adjust the weightage of funds when you invest in the Custom portfolio. Out of the four portfolios, the Custom portfolio is the only one that is Shariah-compliant. 

The other portfolios consist of funds that are not classified as Shariah-compliant investments by the Securities Commission.  

You will need to deposit a minimum of RM5 to start investing with Raiz. Investors will be charged the following fee when investing on Raiz: 

Account balance (RM)  Fee 
Under 6,000  RM1.50 per month 
6,000 and above  0.3% per year 

 

To open an account, download the Raiz app and set up an account with your bank card. You may need to provide details, such as your MyKad number and mobile number. 

Read Also: Robo Advisors In Singapore (2024): What You Need To Know Before Investing 

 

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